The East Otago-based miner has seen a resurgence in its share price, from 22c in February to trade up to $2.70 before easing to $2.39 yesterday, in the glow of record spot market gold prices and renewed investor interest in gold-producing stocks.
Between its Macraes open pit and underground operations and Reefton open pit, the 20-year-old company remains on schedule to deliver a record 297,000-303,000 ounces for calendar 2009, but this week signalled 2010 production was forecast to be down to a range of 270,000-290,000 ounces - at worst a 10.8% decline.
However, for the second time since December, Oceana yesterday upgraded its estimated mineral reserve figures by a further 495,000 ounces to a total of 754,000 ounces, following more geologic analysis at its Macraes Southern Pit.
When contacted, Oceana vice-president corporate and investor relations Darren Klinck said "production from New Zealand in 2010 is slightly lower than 2009 on account of slightly lower grades from the Macraes pit more in line with reserve grades".
Craigs Investment Partners broker Peter McIntyre said it was likely over the expected remaining 14-year life of the Macraes mine that Oceana would strike some years of lower grades.
In a cashless merger with Sydney-based Climax in late 2006, Oceana took over development of the Didipio gold and copper prospect in the northern Philippines, but by June 2008 had spent about $US120 million ($NZ163.2 million) on development before its estimated cost blew out and doubled to $US350 million, prompting its mothballing.
Combined with the credit crunch and recession, Oceana had to date been unable to raise the estimated $US185 million required to kick-start the development.
Mr McIntyre said reports of the relatively high-grade gold and copper deposits at Didipio meant Oceana would most likely have to go for joint-venture funding if it was unable to re-fund the project itself.
In mid-September, Oceana rejected reports from Philippine-based Oceana staff that rising gold prices would enable Oceana to restart Didipio on its own, instead saying technical studies were still under way and the board would evaluate the results after completion.
Mr Klinck said this week Oceana was still completing a "technical re-optimisation study", which was examining both the "capital-to-complete" requirements and the scope of the Didipio project.
"The company will provide further details once this process is complete," Mr Klinck said.
An unspecified portion of $NZ30 million raised by Oceana last July in $1 CHESS (Clearing House Electronic Subregister System) depository interests was earmarked for the revised feasibility study.
